Has the Health budget been cut?

The Chancellor today announced that Health spending would rise in real terms. A closer look at the numbers suggest that the Health budget will fall against the baseline set out in the June Budget.

NHS-DEL-Emergency-Budget-Spending-Review

The Chancellor today announced that Health spending would rise in real terms. But a closer look at the numbers suggest that the Health budget will fall against the baseline set out in the June Budget.

Table 2.2 of the June Budget clearly shows that the departmental expenditure limit for current spending in the Department of Health would be £101.5 billion. But Table 1 of today’s Comprehensive Spending Review sets out that the same number is £98.7 billion.

Health spending will rise to £109.8 billion by 2014-15. In real terms, the rise from the new baseline delivers a 1.3 per cent rise. But compared to the baseline set out just four months ago, the rise turns into a cut of 1.5 per cent.

What has happened to the missing £3 billion this year? If these are the the administrative savings, why have they not been reinvested in the NHS?

UPDATE 14.38:

On May 12th, Health Secretary Andrew Lansley said:

“What is sustainable for the NHS is that we deliver efficiency savings in the NHS in the same way as the rest of the public sector.

“But because of the nature of the demands on the NHS, if we can secure those efficiency savings, we can reinvest them in the NHS to deliver ­improving outcomes for the public.”

If the missing £3 billion is explained by efficiency savings, what happened to them?

UPDATE 15.51, 21/10:

The BBC have followed up this story but the Government are no closer to providing a robust justification for the baseline switch. In response to a question from shadow health secretary, John Healey, Andrew Lansley would only say “the opposition was comparing different numbers from different sources.” Yes, indeed. Different numbers from the Budget and Spending Review. The onus is on the Government to explain why they’re different.

35 Responses to “Has the Health budget been cut?”

  1. Bethany W-Bradley

    RT @leftfootfwd: Has the Health budget actually been cut? http://bit.ly/bZlka4

  2. Shamik Das

    Has the Health budget actually been cut? http://bit.ly/bZlka4 – @wdjstraw on the detail of the #CSR on @leftfootfwd

  3. Aaron

    RT @leftfootfwd: Has the Health budget been cut? http://bit.ly/cjT6Zv. Actually, yes.

  4. Aaron

    RT @leftfootfwd: Has the Health budget been cut? http://bit.ly/cjT6Zv. Actually, yes.

  5. Will Straw

    It looks like Osborne moved the health baseline to claim that health spending is rising. It's actually been cut by 1.5% http://bit.ly/bZlka4

  6. Will Straw

    It looks like Osborne moved the health baseline to claim that health spending is rising. It's actually been cut by 1.5% http://bit.ly/bZlka4

  7. Tod Sullivan

    RT @wdjstraw: It looks like Osborne moved the health baseline to claim that health spending is rising. It's actually been cut by 1.5% http://bit.ly/bZlka4

  8. Dale Quigley

    Seems the NHS is not so sacred – http://bit.ly/bZlka4 #CSR10 #cuts

  9. stefanstern

    RT @wdjstraw: It looks like Osborne moved the health baseline to claim that health spending is rising. It's actually been cut by 1.5% http://bit.ly/bZlka4

  10. Gareth Douce

    RT @TodJSullivan: looks like Osborne moved health baseline 2 claim health spending is rising. actually been cut by 1.5% http://bit.ly/bZlka4

  11. Hali Santamas

    RT @leftfootfwd: Has the Health budget actually been cut? http://bit.ly/bZlka4

  12. Shamik Das

    A reminder of the #CSR top lines: DCLG -27% BIS -25% DCMS -24% Home -23% MoJ -23% DfT -21% DECC -18% MoD -7.5%… NHS? http://bit.ly/bZlka4

  13. Richard Lane

    Reminder of #CSR top lines: DCLG -27% BIS -25% DCMS -24% Home -23% MoJ -23% DfT -21% DECC -18% MoD -7.5% http://bit.ly/bZlka4

  14. Richard Lane

    Has the NHS budget been cut by the coalition? http://bit.ly/bZlka4 #CSR

  15. MarissaJaneSmith

    RT @Politicana: Has the NHS budget been cut by the coalition? http://bit.ly/bZlka4 #CSR >Looks like it

  16. Marissa

    AAre the figures transposed with 2011-12?

  17. Mr Jabberwock

    Is this in part the £2B that has been ring-fenced for for Adult Social Care which Eric Pickles says has come out of the Health Budget.

  18. Anthony

    Wouldn’t depreciation add to the budget as a cost. In other words, maybe the difference between the budget and CSR figures are depreciation. After all, the CSR figures are a little lower and do say “excluding deperciation”. Looking at the figures for other departments show that in almost all cases there is a discrepancy between the two with the budget figures being a little higher than the CSR. If the difference was that the CSR does not include depreciation (as it says) this would make sense.

  19. Colin Waude

    “@leftfootfwd: Has the Health budget actually been cut? http://bit.ly/bZlka4” <~ foot. Themselves. Shot.

  20. Kevin Richards

    Smoke and Mirrors from George OsborneRT @leftfootfwd: Has the Health budget been cut? check for yourself http://bit.ly/cjT6Zv

  21. Dominic Smith

    RT @wdjstraw: It looks like Osborne moved the health baseline to claim that health spending is rising. It's actually been cut by 1.5% http://bit.ly/bZlka4

  22. .

    RT @leftfootfwd: Has the Health budget been cut? http://bit.ly/cjT6Zv

  23. .

    RT @leftfootfwd: Has the Health budget been cut? http://bit.ly/cjT6Zv HSJ take on Health budget change here http://goo.gl/U27E #mhuk #ukmh

  24. Rich

    Yes, think th discrepancy is just depreciation

  25. Mr. Sensible

    Will, I seem to remember that the cost of Lansley’s NHS reforms would be £3 billion.

    Could that have anything to do with it?

  26. Richard Blogger

    Healey has asked some interesting questions about this, perhaps an update is needed for this post?

    http://library.constantcontact.com/doc203/1102665899193/doc/ZrrGZkv2jdEsenUO.pdf

  27. mike

    serious mental heath cuts going on now
    wards closing
    hostels often jointly funded closing

  28. Dave

    Have the “Impact of Alignment Project classification changes” figures given in June have been folded into the main figures given yesterday? The remaining anomaly of £0.2bn could be that the classification changes have been updated, perhaps with a rounding error.

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